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CVB Financial Corp. Reports Earnings for the Fourth Quarter and Record Earnings for the Year Ended 2017

Net earnings were $17.9 million for the fourth quarter of 2017, or
$0.16 per share.

Full year net earnings were $104.4 million, or $0.95 per share, for
the year ended 2017.

Income tax expense included a one-time charge of $13.2 million due
to the Tax Cuts and Jobs Act of 2017.

Excluding the tax effect of the $13.2 million, earnings were $31.1
million, for the fourth quarter of 2017, or $0.28 per share, and were
$117.6 million, or $1.07 per share, for the year ended 2017.

CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business
Bank ("the Company"), announced earnings for the quarter and year ended
December 31, 2017.

CVB Financial Corp. reported net income of $17.9 million for the quarter
ended December 31, 2017, compared with $29.7 million for the third
quarter of 2017 and $27.1 million for the fourth quarter of 2016.
Diluted earnings per share were $0.16 for the fourth quarter, compared
to $0.27 for the prior quarter and $0.25 for the same period last year.
Income tax expense for the fourth quarter of 2017 included a one-time
charge of $13.2 million due to the re-measurement of the Company's net
deferred tax asset ("DTA") resulting from the Tax Cuts and Jobs Act of
2017 ("Tax Reform Act"). Excluding the impact of the $13.2 million DTA
revaluation, net income totaled $31.1 million for the fourth quarter of
2017, or $0.28 per share. Net earnings grew by $1.4 million over the
prior quarter and $4.0 million from the fourth quarter of 2016, when the
impact of the DTA revaluation is excluded.

Chris Myers, President and CEO of Citizens Business Bank, commented,
"Excluding the nonrecurring charge to tax expense, fourth quarter net
income was $31.1 million and year-end earnings were $117.6 million, both
all-time highs for the Bank. 2017 was truly an outstanding year."

Net income of $17.9 million for the fourth quarter of 2017 produced an
annualized return on beginning equity of 6.58%, an annualized return on
average equity ("ROAE") of 6.48%, and an annualized return on average
assets ("ROAA") of 0.85%. Excluding the impact of the $13.2 million DTA
revaluation resulting from the Tax Reform Act, ROAE and ROAA were 11.28%
and 1.48%, respectively. Net income for the fourth quarter of 2016
produced an annualized return on average equity of 10.60% and an
annualized return on average assets of 1.33%. The efficiency ratio for
the fourth quarter of 2017 was 41.81%, compared to 42.44% for the third
quarter of 2017 and 47.30% for the fourth quarter of 2016.

Net income totaled $104.4 million for the year ended December 31, 2017,
our highest in company history. This represented a $3.0 million
increase, or 2.94%, from the prior year. When the DTA revaluation is
excluded, net income increased by $16.2 million, or 15.96% over 2016.
Earnings for 2017 included $8.5 million in loan loss provision
recapture, compared to $6.4 million in loan loss recapture in 2016. 2017
also included a $2.9 million net gain from an eminent domain
condemnation of one of our business financial center buildings, a
$906,000 net gain on the sale of a branch acquired from Valley Business
Bank ("VBB"), and a $542,000 net gain on the sale of our operations and
technology center. This was offset by $13.2 million in nonrecurring
income tax expense resulting from the DTA revaluation in the fourth
quarter of 2017. Diluted earnings per share were $0.95 for 2017,
compared to $0.94 for 2016. Excluding the impact of the $13.2 million
DTA revaluation, net income totaled $117.6 million, or $1.07 per share,
for the year ended December 31, 2017. Net income for the year ended
December 31, 2017 produced an annualized return on beginning equity of
10.54%, a ROAE of 9.84% and a ROAA of 1.26%. Excluding the impact of the
DTA revaluation, ROAE and ROAA were 11.08% and 1.42%, respectively, for
the year ended 2017. The efficiency ratio for 2017 was 43.84%, compared
to 46.73% for 2016.

Net interest income before recapture of loan loss provision was $71.3
million for the quarter, which was a $464,000 decrease, or 0.65%, over
the third quarter of 2017, and a $5.8 million increase, or 8.91%, over
the fourth quarter of 2016. Total interest income and fees on loans for
the fourth quarter of 2017 of $55.9 million decreased $125,000, or
0.22%, from the third quarter of 2017 but increased $6.7 million, or
13.54%, from the fourth quarter of 2016. Total investment income of
$16.9 million decreased $532,000, or 3.05%, from $17.4 million for the
third quarter of 2017 and grew by $83,000, or 0.49%, from the fourth
quarter of 2016. Interest expense decreased $87,000, or 4.08%, from the
third quarter of 2017 and grew by $121,000 in comparison with the fourth
quarter of 2016.

Net interest income before recapture of loan loss provision was $278.9
million for 2017, a $21.9 million increase, or 8.50%, over 2016. Total
interest income and fees on loans grew by $21.1 million, or 10.95%, over
2016 to $214.1 million. Total investment income increased by $2.9
million, or 4.22%, to $70.8 million from 2016. Interest expense
increased by $320,000, or 4.01%, in 2017.

During the fourth quarter of 2017, $1.5 million of loan loss provision
was recaptured, compared to $1.5 million recaptured for the prior
quarter, and $4.4 million recaptured for the same period last year.
Recapture of provision for loan losses totaled $8.5 million for 2017,
compared to $6.4 million for 2016.

Noninterest income was $12.6 million for the fourth quarter of 2017,
compared with $10.0 million for the third quarter of 2017, and $8.4
million for the fourth quarter of 2016. The $2.6 million increase when
compared to the third quarter of 2017 was primarily the result of a $2.9
million net gain due to an eminent domain condemnation and a $906,000
net gain on sale of a branch, as previously described. The third quarter
of 2017 included a $542,000 net gain on sale of our operations and
technology center which was classified as an asset held-for-sale at
December 31, 2016. Excluding these net gains from sales and eminent
domain condemnation, noninterest income for the fourth quarter of 2017
decreased by $714,000 quarter-over-quarter and increased by $370,000
compared to the fourth quarter of 2016.

For the year ended December 31, 2017, noninterest income was $42.1
million, compared to $35.6 million for 2016. Excluding net gains from
sales in both 2017 and 2016, as well as the net gain from the eminent
domain condemnation in 2017, noninterest income grew by $3.6 million, or
10.52%.

Noninterest expense for the fourth quarter of 2017 was $35.1 million,
compared to $34.7 million for the third quarter of 2017, and $34.9
million for the fourth quarter of 2016. The $351,000
quarter-over-quarter increase was primarily the result of a $658,000
increase in professional service and legal expense and a $300,000
increase in marketing and promotion expense. This was partially offset
by a decrease of $290,000 in occupancy costs and a $175,000 decrease in
acquisition expense. The third quarter of 2017 included $405,000 in
legal expense recoveries. The $125,000 increase in noninterest expense
over the fourth quarter of 2016 was primarily due to a $2.3 million
increase in salaries and employee benefits, a $422,000 increase in
professional service expense, and a $417,000 increase in occupancy and
equipment costs. This was partially offset by $4.1 million in
nonrecurring expenses in the fourth quarter of 2016 resulting from a
fair value adjustment of $2.6 million for our operations and technology
center and a $1.5 million accrual for the settlement of a wage-hour
class action lawsuit. As a percentage of average assets, noninterest
expense was 1.67%, compared to 1.65% for the third quarter of 2017 and
1.72% for the fourth quarter of 2016.

Noninterest expense of $140.8 million for the year ended December 31,
2017 was $4.0 million higher than the prior year. The $4.4 million, or
5.37%, increase in compensation and benefit expense includes additional
staff from the acquisition of VBB and normal year-over-year escalation
in wages. The $1.1 million year-over-year increase in occupancy and
equipment expense included both temporary and permanent expenses related
to the acquisition of VBB and the build-out and relocation to our new
operations and technology building. Acquisition related expenses were
$2.3 million, up $354,000 from the prior year. As a percentage of
average assets, noninterest expense was 1.70% for both 2017 and 2016.

Net Interest Income and Net Interest Margin

Net interest income, before provision for loan losses, was $71.3 million
for the fourth quarter of 2017, compared to $71.7 million for the third
quarter of 2017 and $65.4 million for the fourth quarter of 2016. Our
net interest margin (tax equivalent) was 3.68% for the fourth quarter of
2017, compared to 3.70% for the third quarter of 2017 and 3.47% for the
fourth quarter of 2016. Total average earning asset yields (tax
equivalent) were 3.79% for the fourth quarter of 2017, compared to 3.81%
for the third quarter of 2017 and 3.57% for the fourth quarter of 2016.
Total cost of funds was 0.11% for the fourth quarter of 2017, compared
to 0.12% for the third quarter of 2017 and 0.11% for the fourth quarter
of 2016. The decrease in the net interest margin over the third quarter
of 2017 was the result of a decrease in earning asset yield that
primarily resulted from a five basis point decrease in loan yields.
While overall loan yields were positively impacted in the fourth quarter
of 2017 by $762,000 in additional discount accretion as a result of the
payoff of a purchase credit impaired loan, third quarter loan yields
were impacted more by $1.0 million in interest recovery from a troubled
debt restructured ("TDR") that paid in full. Excluding these two items
that impacted both third and fourth quarter net interest income, the
adjusted net interest margin would be 3.64% and 3.65% for the fourth and
third quarter of 2017, respectively. The tax equivalent yield on
investments remained unchanged quarter-over-quarter. The 21 basis point
increase in the net interest margin over the fourth quarter of 2016 was
due in part to a 13 basis point increase in loan yields. The remaining
eight basis point increase can be attributed mostly to a change in the
mix of earning assets, as average loans increased by $441.9 million and
represented 60.9% of earning assets in the fourth quarter of 2017,
compared to 56.4% for the fourth quarter of 2016.

Net interest income before provision for loan losses, totaled $278.9
million for the year ended December 31, 2017, compared to $257.1 million
for 2016. Our net interest margin (tax equivalent) was 3.63% for 2017,
compared to 3.46% for 2016. Total average earning asset yields (tax
equivalent) was 3.74%, compared to 3.57% for 2016. The increase in the
net interest margin over 2016 was the result of an increase in our
earning asset yield that resulted from a combination of a three basis
point increase in loan yields and the change in mix of earning assets
represented by an increase in loans as a percentage of earning assets
growing from 55.3% in 2016 to 59.3% in 2017. The non-tax equivalent
yield on investments increased seven basis points year-over-year.

Income Taxes

On December 22, 2017, the Tax Reform Act was enacted into law. Beginning
in 2018, the Tax Reform Act reduces the federal tax rate for
corporations from 35% to 21% and changes or limits certain tax
deductions. During the fourth quarter of 2017, the Company recorded a
one-time charge against earnings of $13.2 million as a result of the tax
rate reduction and re-measurement of its net deferred tax assets.

Our effective tax rate for the quarter and year ended December 31, 2017
was 64.51% and 44.70%, respectively, compared with 37.50% for both the
quarter and year ended December 31, 2016. Excluding the DTA revaluation
adjustment, our effective tax rate was 38.25% and 37.70% for the quarter
and year ended December 31, 2017, respectively. The effective tax rate
for 2017 was also impacted by the tax effects related to the adoption of
Accounting Standards Update ("ASU") No. 2016-09, Compensation - Stock
Compensation (Topic 718): Improvements to Employee Share-Based Payment
Accounting, which resulted in the recognition of excess tax benefits of
approximately $1.6 million in our provision for income taxes, rather
than as an adjustment of paid-in capital. Our estimated annual effective
tax rate also varies depending upon the level of tax-advantaged income
as well as available tax credits.

Assets

The Company reported total assets of $8.27 billion at December 31, 2017.
This represented a decrease of $33.4 million, or 0.40%, from total
assets of $8.30 billion at September 30, 2017. Interest-earning assets
of $7.80 billion at December 31, 2017 decreased $13.6 million, or 0.17%,
when compared with $7.82 billion at September 30, 2017. The decrease in
interest-earning assets was primarily due to a $113.2 million decrease
in investment securities. This was partially offset by an $84.2 million
increase in total loans and a $17.9 million increase in interest-earning
balances due from the Federal Reserve.

Total assets of $8.27 billion at December 31, 2017 increased $196.9
million, or 2.44%, from total assets of $8.07 billion at December 31,
2016. Interest-earning assets totaled $7.80 billion at December 31,
2017, an increase of $156.8 million, or 2.05%, when compared with
earning assets of $7.64 billion at December 31, 2016. The increase in
interest-earning assets was primarily due to a $435.6 million increase
in total loans, which was partially offset by a $271.3 million decrease
in investment securities.

Investment Securities

Total investment securities were $2.91 billion at December 31, 2017, a
decrease of $113.2 million, or 3.74%, from $3.02 billion at September
30, 2017 and a decrease of $271.3 million, or 8.52%, from $3.18 billion
at December 31, 2016.

At December 31, 2017, investment securities held-to-maturity ("HTM")
totaled $829.9 million, an $18.5 million decrease, or 2.18%, from
September 30, 2017 and an $81.8 million decrease, or 8.97%, from
December 31, 2016.

At December 31, 2017, investment securities available-for-sale ("AFS")
totaled $2.08 billion, inclusive of a pre-tax net unrealized gain of
$2.9 million. AFS securities declined by $94.7 million, or 4.35%, from
September 30, 2017, and declined by $189.5 million, or 8.35%, from
December 31, 2016.

Combined, the AFS and HTM investments in mortgage backed securities
("MBS") and collateralized mortgage obligations ("CMOs") totaled $2.43
billion at December 31, 2017, compared to $2.52 billion at September 30,
2017 and $2.62 billion at December 31, 2016. Virtually all of our MBS
and CMOs are issued or guaranteed by government or government sponsored
enterprises, which have the implied guarantee of the U.S. Government.

Our combined AFS and HTM municipal securities totaled $324.2 million as
of December 31, 2017. These securities are located in 29 states. Our
largest concentrations of holdings are located in Minnesota at 21.84%,
Texas at 10.05%, Massachusetts at 9.97%, and Connecticut at 5.47%.

In the fourth quarter of 2017, we purchased $43.8 million of MBS/CMO
securities with an average yield of approximately 2.41%.

Loans

Total loans and leases, net of deferred fees and discounts, of $4.83
billion at December 31, 2017 increased by $84.2 million, or 1.77%, from
September 30, 2017. The increase in total loans was principally due to
growth of $77.2 million in dairy & livestock and agribusiness loans and
$37.8 million in commercial real estate loans. The overall increase in
loans and leases were partially offset by decreases of $15.4 million in
commercial and industrial loans, $8.5 million in single-family
residential ("SFR") mortgage loans, and $6.6 million in consumer and
other loans. The majority of growth in dairy & livestock and
agribusiness loans is seasonal.

Total loans and leases, net of deferred fees and discounts, of $4.83
billion at December 31, 2017 increased by $435.6 million, or 9.91%, from
December 31, 2016. The increase in total loans included $309.7 million
of loans acquired from VBB in the first quarter of 2017. Excluding the
acquired VBB loans, the $125.9 million, or 2.86%, increase in total
loans was principally due to growth of $182.8 million in commercial real
estate loans and $12.8 million in Small Business Administration ("SBA")
loans. This growth was partially offset by decreases of $21.4 million in
consumer and other loans, $17.2 million in commercial and industrial
loans, $16.3 million in construction loans, and $14.7 million in SFR
loans.

Deposits & Customer Repurchase Agreements

Deposits of $6.55 billion and customer repurchase agreements of $553.8
million totaled $7.10 billion at December 31, 2017. This represents an
increase of $37.5 million, or 0.53%, when compared with total deposits
and customer repurchase agreements of $7.06 billion at September 30,
2017. Deposits and customer repurchase agreements increased by $187.9
million, or 2.72%, when compared with total deposits and customer
repurchase agreements of $6.91 billion at December 31, 2016.

Noninterest-bearing deposits were $3.85 billion at December 31, 2017, a
decrease of $62.4 million, or 1.60%, when compared to September 30,
2017, and an increase of $172.9 million, or 4.71%, when compared to
$3.67 billion at December 31, 2016. At December 31, 2017,
noninterest-bearing deposits were 58.75% of total deposits, compared to
59.15% at September 30, 2017 and 58.22% at December 31, 2016.

The increase in total deposits from the end of 2016 included $172.5
million of noninterest-bearing deposits and $361.8 million of total
deposits acquired from VBB during the first quarter of 2017. In the
fourth quarter of 2017, we sold a branch acquired from VBB, which
included approximately $27 million in total deposits.

Our average cost of total deposits was 0.09% for the quarter ended
December 31, 2017, unchanged from both the third quarter of 2017 and the
fourth quarter of 2016. Our cost of total deposits including customer
repurchase agreements was 0.10% for the quarters ended December 31,
2017, September 30, 2017 and December 31, 2016.

FHLB Advance, Other Borrowings and Debentures

At December 31, 2017, we had no short-term borrowings, compared to $63.0
million at September 30, 2017 and $53.0 million at December 31, 2016.

At December 31, 2017, we had $25.8 million of junior subordinated
debentures, unchanged from September 30, 2017 and December 31, 2016.
These debentures bear interest at three-month LIBOR plus 1.38% and
mature in 2036.

Asset Quality

The allowance for loan losses totaled $59.6 million at December 31,
2017, compared to $60.6 million at September 30, 2017 and $61.5 million
at December 31, 2016. The allowance for loan losses for the fourth
quarter of 2017 was increased by net recoveries on loans of $454,000 and
was reduced by a $1.5 million loan loss provision recapture. The
allowance for loan losses was 1.23%, 1.28%, 1.28%, 1.28%, and 1.40% of
total loans and leases outstanding, at December 31, 2017, September 30,
2017, June 30, 2017, March 31, 2017, and December 31, 2016,
respectively. The ratio as of the most recent four quarters was reduced
by the $309.7 million loans acquired from VBB that are recorded at fair
market value, without a corresponding loan loss allowance.

Nonperforming loans, defined as nonaccrual loans plus nonperforming TDR
loans, were $10.7 million at December 31, 2017, or 0.22% of total loans,
and included $3.7 million of loans acquired from VBB. This compares to
nonperforming loans of $11.6 million, or 0.24% of total loans, at
September 30, 2017, and $7.2 million, or 0.16% of total loans, at
December 31, 2016. The $10.7 million in nonperforming loans at December
31, 2017 are summarized as follows: $6.8 million in commercial real
estate loans, $1.3 million in SFR mortgage loans, $906,000 in SBA loans,
$829,000 in dairy & livestock and agribusiness loans, $552,000 in
consumer and other loans, and $250,000 in commercial and industrial
loans. The $857,000 decrease in nonperforming loans quarter-over-quarter
was primarily due to a $705,000 decrease in nonperforming SBA loans and
a $191,000 decrease in nonperforming consumer and other loans. This was
partially offset by a $114,000 increase in nonperforming commercial real
estate loans.

We had $4.5 million in Other Real Estate Owned ("OREO") at December 31,
2017, September 30, 2017 and December 31, 2016. As of December 31, 2017,
we had one OREO property, unchanged from September 30, 2017 and December
31, 2016. There were no additions or sales of OREO for the twelve months
ended December 31, 2017.

At December 31, 2017, we had loans delinquent 30 to 89 days of $1.2
million. This compares to $271,000 at September 30, 2017, and $436,000
at December 31, 2016. As a percentage of total loans, delinquencies,
excluding nonaccruals, were 0.02% at December 31, 2017, 0.01% at
September 30, 2017, and 0.01% at December 31, 2016.

At December 31, 2017, we had $4.8 million in performing TDR loans,
compared to $5.7 million in performing TDR loans at September 30, 2017,
and $19.2 million in performing TDR loans at December 31, 2016. In terms
of the number of loans, we had 16 performing TDR loans at December 31,
2017, compared to 21 performing TDR loans at September 30, 2017, and 26
performing TDR loans at December 31, 2016.

Nonperforming assets, defined as nonaccrual loans plus OREO, totaled
$15.2 million at December 31, 2017, $16.1 million at September 30, 2017,
and $11.7 million at December 31, 2016. As a percentage of total assets,
nonperforming assets were 0.18% at December 31, 2017, 0.19% at September
30, 2017, and 0.14% at December 31, 2016.

Classified loans are loans that are graded "substandard" or worse. At
December 31, 2017, classified loans totaled $57.3 million, compared to
$75.1 million at September 30, 2017, and $108.3 million at December 31,
2016. Total classified loans at December 31, 2017 included $5.6 million
of classified loans acquired from VBB in the first quarter of 2017. The
quarter-over-quarter decrease was primarily due to an $11.6 million
decrease in classified commercial real estate loans, a $2.8 million
decrease in classified commercial and industrial loans, and a $2.3
million decrease in SBA loans.

CitizensTrust

As of December 31, 2017, CitizensTrust had approximately $2.88 billion
in assets under management and administration, including $2.15 billion
in assets under management. Revenues were $2.4 million for the fourth
quarter of 2017 and $9.8 million for 2017, compared to $2.6 million and
$9.6 million, respectively, for the same period of 2016. CitizensTrust
provides trust, investment and brokerage related services, as well as
financial, estate and business succession planning.

Corporate Overview

CVB Financial Corp. ("CVBF") is the holding company for Citizens
Business Bank. CVBF is the ninth largest bank holding company
headquartered in California with assets of approximately $8.3 billion.
Citizens Business Bank is consistently recognized as one of the top
performing banks in the nation and offers a wide array of banking,
lending and investing services through 50 banking centers and 3 trust
office locations serving the Inland Empire, Los Angeles County, Orange
County, San Diego County, Ventura County, Santa Barbara County, and the
Central Valley area of California.

Shares of CVB Financial Corp. common stock are listed on the NASDAQ
under the ticker symbol "CVBF." For investor information on CVB
Financial Corp., visit our Citizens Business Bank website at www.cbbank.com
and click on the "Investors"
tab.

Conference Call

Management will hold a conference call at 7:30 a.m. PST/10:30 a.m. EST
on Thursday, January 25, 2018 to discuss the Company's fourth quarter
and year ended 2017 financial results.

To listen to the conference call, please dial (877) 506-3368. A taped
replay will be made available approximately one hour after the
conclusion of the call and will remain available through February 8,
2018 at 6:00 a.m. PST/9:00 a.m. EST. To access the replay, please dial
(877) 344-7529, passcode 10115318.

The conference call will also be simultaneously webcast over the
Internet; please visit our Citizens Business Bank website at www.cbbank.com
and click on the "Investors"
tab to access the call from the site. Please access the website 15
minutes prior to the call to download any necessary audio software. This
webcast will be recorded and available for replay on the Company's
website approximately two hours after the conclusion of the conference
call, and will be available on the website for approximately 12 months.

Safe Harbor

Certain matters set forth herein (including the exhibits hereto)
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including forward-looking
statements relating to the Company's current business plans and
expectations and our future financial position and operating results.
Words such as "will likely result", "aims", "anticipates", "believes",
"could", "estimates", "expects", "hopes", "intends", "may", "plans",
"projects", "seeks", "should", "will," "strategy", "possibility", and
variations of these words and similar expressions help to identify these
forward-looking statements, which involve risks and uncertainties. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results, performance and/or achievements to differ
materially from those projected. These risks and uncertainties include,
but are not limited to, local, regional, national and international
economic and market conditions and political events and the impact they
may have on us, our customers and our assets and liabilities; our
ability to attract deposits and other sources of funding or liquidity;
supply and demand for real estate and periodic deterioration in real
estate prices and/or values in California or other states where we lend,
including both residential and commercial real estate; a sharp or
prolonged slowdown or decline in real estate construction, sales or
leasing activities; changes in the financial performance and/or
condition of our borrowers, depositors, key vendors or counterparties;
changes in our levels of delinquent loans, nonperforming assets,
allowance for loan losses and charge-offs; the costs or effects of
acquisitions or dispositions we may make, whether we are able to obtain
any required governmental approvals in connection with any such
acquisitions or dispositions, and/or our ability to realize the
contemplated financial or business benefits associated with any such
acquisitions or dispositions; the effect of changes in laws, regulations
and applicable judicial decisions (including laws, regulations and
judicial decisions concerning financial reforms, taxes, bank capital
levels, allowance for loan losses, consumer, commercial or secured
lending, securities and securities trading and hedging, bank operations,
compliance, fair lending, employment, executive compensation, insurance,
cybersecurity, vendor management and information technology) with which
we and our subsidiaries must comply or believe we should comply or which
may otherwise impact us; the effects of additional legal and regulatory
requirements to which we may become subject in the event our total
assets exceed $10 billion; changes in estimates of future reserve
requirements and minimum capital requirements based upon the periodic
review thereof under relevant regulatory and accounting requirements,
including changes in the Basel Committee framework establishing capital
standards for credit, operations and market risk; the accuracy of the
assumptions and estimates and the absence of technical error in
implementation or calibration of models used to estimate the fair value
of financial instruments or expected credit losses or delinquencies;
inflation, changes in market interest rates, securities market and
monetary fluctuations; changes in government-established interest rates
or monetary policies; changes in the amount and availability of deposit
insurance; disruptions in the infrastructure that supports our business
and the communities where we are located, which are concentrated in
California, involving or related to physical site access and/or
communication facilities; cyber incidents, or theft or loss of Company
or customer data or money; political uncertainty or instability; acts of
war or terrorism, or natural disasters, such as earthquakes, drought, or
the effects of pandemic diseases; our timely development and acceptance
of new banking products and services and the perceived overall value of
these products and services by our customers and potential customers;
the Company's relationships with and reliance upon vendors with respect
to certain of the Company's key internal and external systems and
applications; changes in commercial or consumer spending, borrowing and
savings preferences or behaviors; technological changes and the
expanding use of technology in banking and financial services (including
the adoption of mobile banking, funds transfer applications and
electronic marketplaces for loans and other banking products or
services); our ability to retain and increase market share, retain and
grow customers and control expenses; changes in the competitive
environment among financial and bank holding companies, banks and other
financial service and technology providers; competition and innovation
with respect to financial products and services by banks, financial
institutions and non-traditional providers including retail businesses
and technology companies; volatility in the credit and equity markets
and its effect on the general economy or local or regional business
conditions or on the Company's customers; fluctuations in the price of
the Company's common stock or other securities, and the resulting impact
on the Company's ability to raise capital or make acquisitions; the
effect of changes in accounting policies and practices, as may be
adopted from time-to-time by our regulatory agencies, as well as by the
Public Company Accounting Oversight Board, the Financial Accounting
Standards Board and other accounting standard-setters; changes in our
organization, management, compensation and benefit plans, and our
ability to retain or expand our workforce, management team and/or our
board of directors; the costs and effects of legal, compliance and
regulatory actions, changes and developments, including the initiation
and resolution of legal proceedings (including securities, bank
operations, consumer or employee class action litigation), the
possibility that any settlement of any putative class action lawsuits
may not be approved by the relevant court or that significant numbers of
putative class members may opt out of any settlement; regulatory or
other governmental inquiries or investigations, and/or the results of
regulatory examinations or reviews; our ongoing relations with our
various federal and state regulators, including the SEC, Federal Reserve
Board, FDIC and California DBO; our success at managing the risks
involved in the foregoing items and all other factors set forth in the
Company's public reports, including our Annual Report on Form 10-K for
the year ended December 31, 2016, and particularly the discussion of
risk factors within that document. The Company does not undertake, and
specifically disclaims any obligation, to update any forward-looking
statements to reflect occurrences or unanticipated events or
circumstances after the date of such statements except as required by
law. Any statements about future operating results, such as those
concerning accretion and dilution to the Company's earnings or
shareholders, are for illustrative purposes only, are not forecasts, and
actual results may differ.

CVB FINANCIAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

December 31,

September 30,

December 31,

2017

2017

2016

Assets

Cash and due from banks

$

119,841

$

137,196

$

119,445

Interest-earning balances due from Federal Reserve

24,536

6,594

2,188

Total cash and cash equivalents

144,377

143,790

121,633

Interest-earning balances due from depository institutions

17,952

20,521

47,848

Investment securities available-for-sale

2,080,985

2,175,648

2,270,466

Investment securities held-to-maturity

829,890

848,382

911,676

Total investment securities

2,910,875

3,024,030

3,182,142

Investment in stock of Federal Home Loan Bank (FHLB)

17,688

17,688

17,688

Loans and lease finance receivables

4,830,631

4,746,424

4,395,064

Allowance for loan losses

(59,585

)

(60,631

)

(61,540

)

Net loans and lease finance receivables

4,771,046

4,685,793

4,333,524

Premises and equipment, net

46,166

46,654

42,086

Bank owned life insurance

146,486

145,970

134,785

Intangibles

6,838

7,177

5,010

Goodwill

116,564

116,564

89,533

Other assets

92,594

95,825

99,458

Total assets

$

8,270,586

$

8,304,012

$

8,073,707

Liabilities and Stockholders' Equity

Liabilities:

Deposits:

Noninterest-bearing

$

3,846,436

$

3,908,809

$

3,673,541

Investment checking

433,971

415,503

407,058

Savings and money market

1,881,099

1,886,687

1,846,257

Time deposits

385,347

397,097

382,824

Total deposits

6,546,853

6,608,096

6,309,680

Customer repurchase agreements

553,773

455,069

603,028

Other borrowings

-

63,000

53,000

Junior subordinated debentures

25,774

25,774

25,774

Payable for securities purchased

-

1,625

23,777

Other liabilities

74,920

73,984

67,586

Total liabilities

7,201,320

7,227,548

7,082,845

Stockholders' equity

1,069,266

1,076,464

990,862

Total liabilities and stockholders' equity

$

8,270,586

$

8,304,012

$

8,073,707

CVB FINANCIAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2017

2016

2017

2016

Assets

Cash and due from banks

$

132,467

$

121,351

$

130,665

$

120,237

Interest-earning balances due from Federal Reserve and federal
funds sold

56,940

121,396

58,324

246,945

Total cash and cash equivalents

189,407

242,747

188,989

367,182

Interest-earning balances due from depository institutions

18,947

68,154

28,213

73,344

Investment securities available-for-sale

2,126,254

2,238,600

2,205,854

2,250,577

Investment securities held-to-maturity

839,496

893,698

864,782

801,041

Total investment securities

2,965,750

3,132,298

3,070,636

3,051,618

Investment in stock of FHLB

17,688

17,688

18,046

17,873

Loans and lease finance receivables

4,754,373

4,312,509

4,623,244

4,195,129

Allowance for loan losses

(60,805

)

(61,280

)

(60,547

)

(60,390

)

Net loans and lease finance receivables

4,693,568

4,251,229

4,562,697

4,134,739

Premises and equipment, net

46,741

43,301

46,314

39,078

Bank owned life insurance

146,176

134,338

143,652

132,891

Intangibles

7,057

5,163

6,957

4,937

Goodwill

116,564

88,189

112,916

85,894

Other assets

121,140

108,985

123,301

115,438

Total assets

$

8,323,038

$

8,092,092

$

8,301,721

$

8,022,994

Liabilities and Stockholders' Equity

Liabilities:

Deposits:

Noninterest-bearing

$

3,942,305

$

3,715,328

$

3,856,987

$

3,539,707

Interest-bearing

2,706,628

2,651,142

2,738,175

2,769,642

Total deposits

6,648,933

6,366,470

6,595,162

6,309,349

Customer repurchase agreements

461,373

590,183

529,447

608,779

FHLB advances

-

-

-

710

Other borrowings

15,338

1,680

16,770

2,322

Junior subordinated debentures

25,774

25,774

25,774

25,774

Payable for securities purchased

14,428

27,494

10,417

24,124

Other liabilities

64,780

64,566

62,594

63,204

Total liabilities

7,230,626

7,076,167

7,240,164

7,034,262

Stockholders' equity

1,092,412

1,015,925

1,061,557

988,732

Total liabilities and stockholders' equity

$

8,323,038

$

8,092,092

$

8,301,721

$

8,022,994

CVB FINANCIAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(Dollars in thousands, except per share amounts)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2017

2016

2017

2016

Interest income:

Loans and leases, including fees

$

55,873

$

49,211

$

214,126

$

192,992

Investment securities:

Investment securities available-for-sale

11,891

11,460

49,778

47,702

Investment securities held-to-maturity

5,001

5,349

21,015

20,227

Total investment income

16,892

16,809

70,793

67,929

Dividends from FHLB stock

305

1,014

1,375

2,224

Interest-earning deposits with other institutions and federal
funds sold

249

330

932

1,905

Total interest income

73,319

67,364

287,226

265,050

Interest expense:

Deposits

1,497

1,413

6,044

5,957

Borrowings and junior subordinated debentures

547

510

2,252

2,019

Total interest expense

2,044

1,923

8,296

7,976

Net interest income before recapture of provision for loan losses

71,275

65,441

278,930

257,074

Recapture of provision for loan losses

(1,500

)

(4,400

)

(8,500

)

(6,400

)

Net interest income after recapture of provision for loan losses

72,775

69,841

287,430

263,474

Noninterest income:

Service charges on deposit accounts

4,015

3,680

15,809

15,066

Trust and investment services

2,413

2,556

9,845

9,595

Gain on sale of loans

-

-

-

1,101

Other

6,154

2,176

16,464

9,790

Total noninterest income

12,582

8,412

42,118

35,552

Noninterest expense:

Salaries and employee benefits

21,949

19,626

87,065

82,630

Occupancy and equipment

4,118

3,701

16,756

15,641

Professional services

1,749

1,327

5,940

5,054

Software licenses and maintenance

1,687

1,388

6,385

5,465

Marketing and promotion

1,355

1,209

4,839

5,027

Acquisition related expenses

75

340

2,251

1,897

Other

4,124

7,341

17,517

21,026

Total noninterest expense

35,057

34,932

140,753

136,740

Earnings before income taxes

50,300

43,321

188,795

162,286

Income taxes

32,449

16,245

84,384

60,857

Net earnings

$

17,851

$

27,076

$

104,411

$

101,429

Basic earnings per common share

$

0.16

$

0.25

$

0.95

$

0.94

Diluted earnings per common share

$

0.16

$

0.25

$

0.95

$

0.94

Cash dividends declared per common share

$

0.14

$

0.12

$

0.54

$

0.48

Tax Reform and Effect of Tax Rate Change Reconciliations (Non-GAAP)

We use certain non-GAAP financial measures to provide supplemental
information regarding our performance. Income tax expense for the three
and twelve months ended December 31, 2017 includes a one-time charge of
$13.2 million as a result of the recent enactment of the Tax Cuts and
Jobs Act of 2017. We believe that presenting the effective tax rate,
earnings, ROAA, ROAE, earnings per common share, and dividend payout
ratio, excluding the impact of the re-measurement of our net deferred
tax asset, provides additional clarity to the users of financial
statements regarding core financial performance.

Percentage of nonperforming assets to total loans outstanding and
OREO

0.32

%

0.27

%

Percentage of nonperforming assets to total assets

0.18

%

0.14

%

Allowance for loan losses to nonperforming assets

390.90

%

526.93

%

Twelve Months Ended

December 31,

2017

2016

Allowance for loan losses:

Beginning balance

$

61,540

$

59,156

Total charge-offs

(151

)

(238

)

Total recoveries on loans previously charged-off

6,696

9,022

Net recoveries

6,545

8,784

Recapture of provision for loan losses

(8,500

)

(6,400

)

Allowance for loan losses at end of period

$

59,585

$

61,540

Net recoveries to average loans

0.142

%

0.209

%

CVB FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share amounts)

Quarterly Common Stock Price

2017

2016

2015

Quarter End

High

Low

High

Low

High

Low

March 31,

$

24.63

$

20.58

$

17.70

$

14.02

$

16.21

$

14.53

June 30,

$

22.85

$

19.90

$

17.92

$

15.25

$

18.11

$

15.45

September 30,

$

24.29

$

19.58

$

17.88

$

15.39

$

18.37

$

15.30

December 31,

$

25.49

$

22.25

$

23.23

$

16.32

$

18.77

$

15.82

Quarterly Consolidated Statements of Earnings

Q4

Q3

Q2

Q1

Q4

2017

2017

2017

2017

2016

Interest income

Loans and leases, including fees

$

55,873

$

55,998

$

53,614

$

48,641

$

49,211

Investment securities and other

17,446

17,872

18,975

18,807

18,153

Total interest income

73,319

73,870

72,589

67,448

67,364

Interest expense

Deposits

1,497

1,555

1,559

1,433

1,413

Other borrowings

547

576

547

582

510

Total interest expense

2,044

2,131

2,106

2,015

1,923

Net interest income before recapture of provision for loan losses

71,275

71,739

70,483

65,433

65,441

Recapture of provision for loan losses

(1,500

)

(1,500

)

(1,000

)

(4,500

)

(4,400

)

Net interest income after recapture of provision for loan losses

72,775

73,239

71,483

69,933

69,841

Noninterest income

12,582

10,038

10,776

8,722

8,412

Noninterest expense

35,057

34,706

36,873

34,117

34,932

Earnings before income taxes

50,300

48,571

45,386

44,538

43,321

Income taxes

32,449

18,888

17,013

16,034

16,245

Net earnings

$

17,851

$

29,683

$

28,373

$

28,504

$

27,076

Effective tax rate

64.51

%

38.89

%

37.49

%

36.00

%

37.50

%

Basic earnings per common share

$

0.16

$

0.27

$

0.26

$

0.26

$

0.25

Diluted earnings per common share

$

0.16

$

0.27

$

0.26

$

0.26

$

0.25

Cash dividends declared per common share

$

0.14

$

0.14

$

0.14

$

0.12

$

0.12

Cash dividends declared

$

15,425

$

15,423

$

15,617

$

13,018

$

12,996

CVB FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands)

Loan Portfolio by Type

December 31,

September 30,

June 30,

March 31,

December 31,

2017

2017

2017

2017

2016

Commercial and industrial

$

514,259

$

529,661

$

539,260

$

530,856

$

487,387

SBA

123,438

125,501

130,716

114,265

97,511

Real estate:

Commercial real estate

3,404,144

3,366,316

3,312,068

3,271,592

2,997,735

Construction

77,982

74,148

77,294

72,782

85,879

SFR mortgage

236,364

244,828

250,104

245,537

250,783

Dairy & livestock and agribusiness

348,059

270,817

245,600

244,724

339,847

Municipal lease finance receivables

70,243

71,352

66,048

62,416

64,639

Consumer and other loans

64,457

71,009

74,714

81,534

79,743

Gross loans

4,838,946

4,753,632

4,695,804

4,623,706

4,403,524

Less:

Purchase accounting discount on PCI loans

(2,026

)

(758

)

(1,008

)

(1,258

)

(1,508

)

Deferred loan fees, net

(6,289

)

(6,450

)

(7,098

)

(6,951

)

(6,952

)

Gross loans, net of deferred loan fees and discounts

4,830,631

4,746,424

4,687,698

4,615,497

4,395,064

Allowance for loan losses

(59,585

)

(60,631

)

(60,201

)

(59,212

)

(61,540

)

Net loans

$

4,771,046

$

4,685,793

$

4,627,497

$

4,556,285

$

4,333,524

Deposit Composition by Type and Customer Repurchase Agreements

December 31,

September 30,

June 30,

March 31,

December 31,

2017

2017

2017

2017

2016

Noninterest-bearing

$

3,846,436

$

3,908,809

$

3,929,394

$

3,999,107

$

3,673,541

Investment checking

433,971

415,503

415,768

424,077

407,058

Savings and money market

1,881,099

1,886,687

1,948,634

1,993,196

1,846,257

Time deposits

385,347

397,097

403,385

426,433

382,824

Total deposits

6,546,853

6,608,096

6,697,181

6,842,813

6,309,680

Customer repurchase agreements

553,773

455,069

546,085

564,387

603,028

Total deposits and customer repurchase agreements

$

7,100,626

$

7,063,165

$

7,243,266

$

7,407,200

$

6,912,708

CVB FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands)

Nonperforming Assets and Delinquency Trends

December 31,

September 30,

June 30,

March 31,

December 31,

2017

2017

2017

2017

2016

Nonperforming loans:

Commercial and industrial

$

250

$

313

$

1,058

$

506

$

156

SBA

906

1,611

1,651

1,089

2,737

Real estate:

Commercial real estate

6,842

6,728

6,950

5,623

1,683

Construction

-

-

-

384

-

SFR mortgage

1,337

1,349

963

983

2,207

Dairy & livestock and agribusiness

829

829

829

1,324

-

Consumer and other loans

552

743

771

438

369

Total

$

10,716

$

11,573

$

12,222

$

10,347

$

7,152

% of Total gross loans

0.22

%

0.24

%

0.26

%

0.22

%

0.16

%

Past due 30-89 days:

Commercial and industrial

$

768

$

45

$

-

$

219

$

-

SBA

403

-

-

329

352

Real estate:

Commercial real estate

-

220

218

-

-

Construction

-

-

-

-

-

SFR mortgage

-

-

400

403

-

Dairy & livestock and agribusiness

-

-

-

-

-

Consumer and other loans

1

6

1

429

84

Total

$

1,172

$

271

$

619

$

1,380

$

436

% of Total gross loans

0.02

%

0.01

%

0.01

%

0.03

%

0.01

%

OREO:

Real estate:

Commercial real estate

$

-

$

-

$

-

$

-

$

-

Construction

4,527

4,527

4,527

4,527

4,527

Total

$

4,527

$

4,527

$

4,527

$

4,527

$

4,527

Total nonperforming, past due, and OREO

$

16,415

$

16,371

$

17,368

$

16,254

$

12,115

% of Total gross loans

0.34

%

0.34

%

0.37

%

0.35

%

0.28

%

Tangible Book Value Reconciliations (Non-GAAP)

The tangible book value per share is a Non-GAAP disclosure. The Company
uses certain non-GAAP financial measures to provide supplemental
information regarding the Company's performance. The following is a
reconciliation of tangible book value to the Company stockholders'
equity computed in accordance with GAAP, as well as a calculation of
tangible book value per share as of December 31, 2017 and 2016.